Beauregard Council on Aging, Inc. DeRidder, Louisiana. FINANCIAL STATEMENTS June 30, 2006

Transcription

1 Beauregard Cuncil n Aging, Inc. DeRidder, Luisiana FINANCIAL STATEMENTS June 0, 2006 Under prvisins f state law, this reprt is a public dcument, A cpy f the reprt has been submitted t the entity and ther apprpriate public fficials. The reprt is available fr public inspectin at the Batn Ruge ffice f the Legislative Auditr and, where apprpriate, at the ffice f the parish clerk f curt Release Date

2 TABLE F CNTENTS Statement Schedule Pace N Independent Auditr's Reprt Statement f Net Assets Statement f Activities Statement f Financial Psitin Recnciliatin f the Gvernmental Funds Statement f Financial Psitin t Statement f Net Assets Statement f Revenues, Expenditures and Changes in Fund Balances Recnciliatin f the Statement f Revenues, Expenditures and Changes in Fund Balance f Gvernmental Funds t the Statement f Activities Ntes t the Financial Statements Supplementary Infrmatin Required by GASB Statement 4 Schedule f Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund Title III C-l Fund Title III C-2 Fund Title III B Fund United Way Fund Supplementary Infrmatin Required by GEA Schedule f Nn-Majr Special Revenue Funds Cmbining Statement f Revenues and Expenditures Cmparative Schedule f General Fund Fixed Assets and Changes in General Fund Fixed Assets Reprt n Internal Cntrl ver Financial Reprting and n Cmpliance and ther Matters Based n an Audit f Financial Statements Perfrmed in Accrdance with Gvernment Auditing Standards D E

3 Jhn A. Windham, CPA A Prfessinal Crpratin 1620 Nrth Pine Street Jhn A. Windham, CPA DeRidder, LA 7064 Tel: (7) Fax: (7) INDEPENDENT AUDITR'S REPRT Bard f Directrs Beauregard Cuncil n Aging, Inc. DeRidder, Luisiana I have audited the accmpanying financial statements f the gvernmental activities, and each majr fund f the Beauregard Cuncil n Aging, Inc., as f and fr the year ended June 0, 2006, which cllectively cmprise the Cuncil's basic financial statements as listed in the table f cntents. These financial statements are the respnsibility f the Beauregard Cuncil n Aging, Inc. management. My respnsibility is t express pinins n these financial statements based n my audit. I cnducted my audit in accrdance with auditing standards generally accepted in the United States f America, and the standards applicable t financial audits cntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States. Thse standards require that I plan and perfrm the audit t btain reasnable assurance abut whether the financial statements are free f material misstatement. An audit includes examining, n a test basis, evidence supprting the amunts and disclsures in the financial statements. An audit als includes assessing the accunting principles used and significant estimates made by management, as well as evaluating the verall financial statement presentatin. I believe that my audit prvides a reasnable basis fr my pinins. In my pinin, the financial statements referred t abve present fairly, in all material respects, the financial psitin f the gvernmental activities, and each majr fund f the Beauregard Cuncil n Aging, Inc., as f June 0, 2006, and the respective changes in financial psitin, theref fr the year then ended in cnfrmity with accunting principles generally accepted in the United States f America. In accrdance with Gvernment Auditing Standards, I have als issued my reprt dated Nvember 10,2006 n my cnsideratin f the Beauregard Cuncil n Aging, Inc., internal cntrl ver financial reprting and my tests f its cmpliance with certain prvisins f laws, regulatins, cntracts and grant agreements and ther matters. The purpse f that reprt is t describe the scpe f my testing f internal cntrl ver financial reprting and cmpliance and the results f that testing, and nt t prvide an pinin n the internal cntrl ver financial reprting r n cmpliance. That reprt is an integral part f an audit perfrmed in accrdance with Gvernment Auditing Standards and shuld be cnsidered in assessing the results f my audit. The budgetary cmparisn infrmatin n pages 2 thrugh 28, are nt a required part f the basic financial statements but are supplementary infrmatin required by accunting principles generally accepted in the United States f America. I have applied certain limited prcedures, which cnsisted principally f inquiries f management regarding the methds f measurement and presentatin f the required supplementary infrmatin. Hwever, I did nt audit the infrmatin and express n pinin n it. The Beauregard Cuncil n Aging, Inc., has nt presented management's discussin and analysis that accunting principles generally accepted in the United States has determined is necessary t supplement, althugh nt required t be part f, the basic financial statements.

4 Bard f Directrs Beauregard Cuncil n Aging, Inc. Page 2 My audit was cnducted fr the purpse f frming pinins n the financial statements that cllectively cmprise the Beauregard Cuncil n Aging, Inc.'s, basic financial statements. The cmbining nnmajr fund financial statements and cmparative schedule f general fixed assets are presented fr purpses f additinal analysis and are nt a required part f the basic financial statements. The cmbining nnmajr fund financial statements and cmparative schedule f general fixed assets have nt been subjected t the auditing prcedures applied in the audit f the basic financial statements and, accrdingly I express n pinin n them. DeRidder, Luisiana Nvember 10, 2006

5 BASIC FINANCIAL STATEMENTS

6 Beauregard Cuncil n Aging, Inc. Statement A Statement f Net Assets June 0,2006 ASSETS Current Assets Cash and cash equivalents Grant receivable Ttal current assets Nncurrent Assets Capital assets, net Ttal assets LIABILITIES Current Liabilities Accunts payable NET ASSETS Invested in capital assets Unrestricted Restricted Ttal net assets Ttal liabilities and net assets 67,277 1,708 68,985 18,698 87, ,698 25,118 4,592 87,408 87,68 The accmpanying ntes are an integral part f this statement. 4

7 - SwE 4> 0. X W u E S60 0 r- C p- S 00 'C.s i 2 8 c c a a " i J H U '5b '^ c U- i. u I <J 1 00 CQ g «<u w 00 u. a X w «s e.1 s g i f ff's u w «W V c 9 T C C a a 1-1 ^ *e "fi 6 U,2 e a I S0. I2 H a ^2 JS 5 2.«.ts c < H H U c u M t2

8 Beauregard Cuncil n Aging, Inc. Statement C Statement f Finacial Psitin June 0, 2006 Special Revenue ASSETS General Fund Funds Ttal Current Assets Cash and cash equivalents $ 2, $ 64,944 $ 67,277 Grant receivable - 1,708 1,708 Ttal assets $ 2, $ 66,652 $ 68,985 LIABILITIES AND FUND BALANCES Current Liabilities: Accunts payable _$ - _$ 275 _$ 275 Fund Balances: Unreserved $ 2, $ 22,785 $ 25,118 Reserved - 4,592 4,592 Ttal fund balances $ 2, $ 66,77 $ 68,710 Ttal liabilities and fund balances $ 2, $ 66,652 $ 68,985 The accmpanying ntes are an integral part f this statement. 6

9 Beauregard Cuncil n Aging, Inc. Statement D Recnciliatin f the Gvernmental Funds Statement f Financial Psitin t Statement f Net Assets June 0, 2006 Ttal fund balance - ttal gvernmental funds $ 68,710 Amunts reprted fr gvernmental activities in the statement f net assets are different because: Capital assets used in gvernmental activities are nt financial resurces and therefre are nt reprted in the gvernmental funds balance sheets. 18,698 Net assets f gvernmental activities $ 87,408 The accmpanying ntes are an integral part f this statement. 7

10 w au E u C t r-^ w» " i/i' a C B fl c u W) a <4-l 1 iu Q t C li S 1. E <u 8<J5 P c w < t*. >> tn Gvernr's United Wa Nutritin Service -D m 'S at 'en 1. (A. ^ "a. Public dn; Participant stance S e a In kind sup I 1

11 . r-" m N f- ^ (N Tf" " u I"td CQ U. s c c ' c <J ffl u b (j t- V.51 uj Is P- u w» en J c rt *J (4-1 s I 1 <N ui am services: ulalth, Welfare ar Salaries and her Travel perating servu In kind peratin perating suppl 00 K g a, T 1 T V $ ;ervice; D.Si -i W u 8 t "s Q. C CJ <L> Ttal expend) a 2 e2

12 Beauregard Cuncil n Aging, Inc. Statement F Recnciliatin f the Statement f Revenues, Expenditures and Changes in Fund Balance f Gvernmental Funds t the Statement f Activities Fr the Year Ended June 0, 2006 Net change in fund balances - ttal gvernmental funds $ (860) Amunts reprted fr gvernmental activities in the statement f activities are different because: Gvernmental funds reprt capital utlays as expenditures. Hwever, in the gvernment-wide statement f activities and changes in net assets, the cst f thse assets is allcated ver their estimated useful lives as depreciatin expense. This is the amunt f capital assets recrded in the current perid. 17,147 Depreciatin expense n capital assets is reprted in the gvernmentwide statement f activities and changes in net assets, but they d nt require the use f current financial resurces. Therefre, depreciatin expense is nt reprted as an expenditure in gvernmental funds. (8,79) Change in net assets f gvernmental activities $ 7,548 The accmpanying ntes are an integral part f this statement. 10

13 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements Fr the Year Ending June 0, PURPSE F THE CUNCIL N AGING AND SUMMARY F SIGNIFICANT ACCUNTING PLICIES A. Purpse f the Cuncil n Aging The purpse f the Cuncil is t cllect facts and statistics and make special studies f cnditins pertaining t the emplyment, financial status, recreatin, scial adjustment, mental and physical health r ther cnditins affecting the welfare f the aging peple f Beauregard Parish; t keep abreast f the latest develpments in these fields f activity thrughut Luisiana and the United States; t interpret its findings t the citizens f the parish; t prvide fr a mutual exchange f ideas and infrmatin n the parish and the state level; t cnduct public meetings; t make recmmendatins fr needed imprvements and additinal resurces; t prmte the welfare f aging peple when requested t d s; t crdinate and mnitr services f ther lcal agencies serving the aging peple f the parish; and t assist and cperate with the Gvernr's ffice f Elderly Affairs (GEA) and ther departments f state and lcal gvernment serving the elderly; and t make recmmendatins relevant t the planning and delivery f services t the elderly f the parish. Specific services prvided by the Cuncil t the elderly residents f Beauregard Parish include prviding cngregate and hme delivered meals, nutritinal educatin, persnal care, infrmatin and assistance, utreach, material aid, utility assistance, hmemakers, recreatin, legal assistance, disease preventin, health prmtin, and transprtatin. B. Reprting Entity In 1964, the State f Luisiana passed Act 456, which authrized the charter f vluntary cuncils n aging fr the welfare f the aging peple in their respective parishes. Hwever, befre the Cuncil n aging can begin peratins in a specific parish, its applicatin fr a charter must receive apprval frm the Gvernr's ffice f Elderly Affairs pursuant t LA R.S. 46:1602. The functins f each cuncil n aging in Luisiana must cmply with the bjectives f state laws and each cuncil is gverned by plices and regulatins established by GEA. The Beauregard Cuncil n Aging, Inc. is a legally separate, nn-prfit, quasi-public crpratin. It received its charter and began peratins n September 17, 197. A bard f directrs, cnsisting f 15 vluntary members, wh service three-year terms, gverns the Cuncil. The bard f directrs is cmprised f but nt limited t, representatives f the Parish's elderly ppulatins, general public, private businesses, and elected public fficials. Bard members are elected annually frm general electins. Membership in the Cuncil is pen at all times, withut restrictin, t all residents f Beauregard Parish wh have reached the age f majrity and wh expresses an interest in the Cuncil and wish t cntribute t r share in its prgrams. Membership fees are nt charged. Based n the criteria set frth in GASB Statement 17, the Beauregard Cuncil is nt a cmpnent unit f anther primary gvernment nr des it have any cmpnent units that are related t it. In additin, based n criteria set frth in GASB Cdificatin Sectin 2100, the Cuncil has presented its financial statements as a primary gvernment, because it is a special-purpse gvernment that has a separately elected gverning bdy, is legally separate, and is fiscally independent f ther state and lcal gvernments. As used in GASB Statement 14, the term fiscally independent means that the Cuncil may, withut apprval r cnsent f anther gvernmental entity, determine r mdify its wn budget, levy its wn taxes r set 11

14 Beau regard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cntinued) rates r charges, and issued bnded debt. As previusly mentined, GEA establishes the plicies and regulatins that all cuncils must fllw. Included in its plicies is a prvisin that the Cuncil's budget be apprved by GEA. Hwever, this apprval prcess is part f GEA's general versight respnsibility fr the Cuncil and is mre ministerial r cmpliance riented than substantive. Accrdingly, the Cuncil is viewed as being fiscally independent fr purpses f applying the reprting entity criteria f GASB Statement 14. C. Presentatin f Statements The Cuncil's statements are prepared in accrdance with accunting principles generally accepted (GAAP) in the United States f America as applicable t gvernmental entities. The Gvernmental Accunting Standards Bard (GASB) is respnsible fr establishing GAAP fr state and lcal gvernments thrugh its prnuncements (Statements and Interpretatins). Gvernments are als required t fllw the prnuncements f the Financial Accunting Standards Bard (FASB) issued thrugh Nvember 0, 1989 (when applicable) that d nt cnflict r cntradict GASB prnuncements. The Cuncil has the ptin t apply FASB prnuncements issued after that date t its business-type activities and enterprise funds; hwever; the Cuncil has chsen nt t d s because it des nt have any business-type activities r enterprise funds. The mre significant accunting plicies established in GAAP and used by the Cuncil is discussed belw. In June 1999, the Gvernmental Accunting Standards Bard (GASB) unanimusly apprved Statement N. 4, Basic Financial Statements and Management's Discussin and Analysis fr State and Lcal Gvernments. Certain f the significant changes in the Statement include the fllwing: Fr the first time the financial statements include: Gvernmental-Wide Financial statements prepared using full accrual accunting fr all the Cuncil's activities. A change in the fund financial statements t fcus n the majr funds. These and ther changes are reflected in the accmpanying financial statements (including ntes t financial statements). D. Basic Financial Statements - Gvernment-Wide Statements The Cuncil's basic financial statements include bth Gvernment-Wide (reprting the Cuncil as a whle) and fund financial statements (reprting the Cuncil's majr funds). Bth the Gvernment-Wide and Fund Financial Statements categrize primary activities as either gvernmental r business type. The Cuncil's functins and prgrams have been classified as gvernmental activities. The Cuncil des nt have any business-type activities, fiduciary funds, r any cmpnent units that are fiduciary in nature. Accrdingly, the Gvernment-Wide financial statements d nt include any f these activities r funds. In the Gvernment-Wide Statement f Net Assets, the gvernmental type activities clumn (a) is presented n a cnslidated basis by clumn, (b) and is reprted n a full accrual, ecnmic resurce basis, which recgnizes all lng-term assets and receivables as well as lng-term debt and bligatins. The Cuncil's net assets are reprted in three parts - invested in capital assets, net f related debt; restricted net assets; and unrestricted net assets. Invested in net assets, net f related debt cnsists f capital assets including restricted capital assets, net f accumulated depreciatin and reduced by the utstanding balances f any bnds, mrtgages, ntes, r ther brrwings that are attributable t the acquisitin, cnstrictin, r imprvement f thse capital assets. Restricted net assets cnsist f net assets with cnstraints placed n the use either by (1) external grups such as creditrs, grantrs, cntributrs, r laws r regulatins f ther 12

15 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cntinued) gvernments; r (2) law thrugh cnstitutinal prvisins r enabling legislatin. Unrestricted net assets include all ther net assets that d nt meet the definitin f "restricted" r "invested in capital assets, net f related debt." The Cuncil's plicy is t use restricted resurces first t finance its activities except fr nutritin services. When prviding nutritin services, revenues earned by the Cuncil under its USDA cntract with GEA can nly be used t pay fr the raw fd cmpnent f each meal that is bught and served t a persn eligible t receive a meal under ne f the nutritin prgrams. The Cuncil's management has discretin as t hw and when t use the USDA revenues when paying fr nutritin prgram csts. Quite ften unrestricted resurces are available fr use that must be cnsumed r they will have t be returned t GEA. In such cases it is better fr management t elect t apply and cnsume the unrestricted resurces befre using the restricted resurces. As a result, the Cuncil will depart frm its usual plicy f using restricted resurces first. The Gvernment-Wide Statement f Activities reprts bth grss and net cst f each f the Cuncil's functins and significant prgrams. Many functins and prgrams are supprted by general gvernment revenues like intergvernmental revenues, and unrestricted investment incme, particularly if the functin r prgram has a net cst. The Statement f Activities begins by presenting grss direct and indirect expenses that include depreciatin, and then reduces the expenses by related prgram revenues, such as perating and capital grants and cntributins, t drive the net cst f each functin r prgram. Prgram revenues must be directly assciated with the functin r prgram t be used t directly ffset its cst perating grants include perating-specific and discretinary (either perating r capital) grants, while the capital grants clumn reflects capital-specific grants. The Cuncil did nt receive any capital-specific grants this year. The Cuncil allcates its indirect csts amng varius functins and prgrams in accrdance with Circular A-87. In additin, GEA prvides grant funds t help the Cuncil pay fr a prtin f its indirect csts. As a result, nly the indirect csts in excess f the GEA funds are allcated t the Cuncil's ther functins and prgrams. The Gvernment-Wide Statements fcus upn the Cuncil's ability t sustain peratins and the change in its net assets resulting frm the current year's activities. E. Basic Financial Statements - Fund Financial Statements The financial transactins f the Cuncil are reprted in individual funds in the Funds Financial Statements. The peratins f each fund are accunted fr with a separate set f self-balancing accunts that cmprise its assets, liabilities, equity, revenues, and expenditures. Resurces are allcated t and accunted fr in individual funds based upn the purpse fr which they are t be spent and the means by which spending activities are cntrlled. The varius funds are reprted by generic classificatin within the financial statements. The Cuncil uses gvernmental fund types. The fcus f the gvernmental funds' measurement (in the fund statements) is n determinatin f financial psitin and changes in financial psitin (surces, uses, and balances f financial resurces) rather than n net incme. An additinal emphasis is placed n majr funds within the gvernmental funds types. A fund is cnsidered majr if it is the primary perating fund f the Cuncil r if its ttal assets, liabilities, revenues, r expenditures are at least 10% f the crrespnding ttal fr all funds f that categry r type. Gvernmental fund equity is called the fund balance. Fund balance is further classified as reserved and unreserved, with unreserved being further split int designated and undesignated. Reserved means that the fund balance is nt available fr expenditures because resurces have already been expended (but nt cnsumed), r a legal restrictin has been placed n certain assets that makes them nly available t meet future bligatins. Designated fund balances result when management tentatively sets aside r earmarks 1

16 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cntinued) certain resurces t expend in a designated manner. In cntrast t reserved fund balances, designated amunts can be changed at the discretin f management. The fllwing is a descriptin f the gvernmental funds f the Cuncil: The General Fund is the general perating fund f the Cuncil. It is used t accunt fr all financial resurces except thse required t be accunted fr in anther fund. Special Revenue Funds are used t accunt fr the prceeds f specific revenue surces that are legally restricted t expenditures fr specified purpses. A large percentage f the Cuncil's special revenue funds are Title III funds. These funds are prvided by the United States Department f Health and Human Services - Administratin n Aging t the Gvernr's ffice Elderly Affairs, which in turn "passes thrugh" the funds t the Cuncil. The Cuncil has established several special revenue funds. The fllwing is a brief descriptin f each special revenue fund's purpse: Title III C-l Cngregate Meals Fund Majr Special Revenue Funds The Title III C-l Fund is used t accunt fr funds, which are used t prvide nutritinal, cngregate meals t the elderly in strategically lcated centers. During the fiscal year July 1, 2005 t June 0,2006, the Cuncil serviced apprximately 8,55 cngregate meals. Title III C-2 Hme Delivered Meals Fund Title III C-2 is used t accunt fr funds, which are used t prvide nutritinal, hme delivered meals t hmebund lder persns. During the fiscal year July 1, 2005 t June 0,2006, the Cuncil served apprximately 29,280 hme delivered meals. Title III-B Supprtive Services Fund Title III-B Supprtive Services Fund is used t accunt fr funds which are t prvide a variety f scial services; such as, infrmatin and assistance, assess services, in-hme services, cmmunity services, legal assistance, and utreach fr peple age 60 and lder. United Way - Hmemaker/Sitter Hmemaker assistance is a prgram designed t help maintain nrmal husehld functining when the family's life is threatened with disruptins by lng r shrt term illness, disability, scial maladjustment, r ther prblems which require assistance in the hme t sustain independent living. Under this prgram, trained hmemakers wrking under agency supervisin and the supervisin f scial wrkers g int hmes as substitute hmemakers and assume respnsibility fr rutine husehld activities such as menu planning, budgeting, shpping, child care, meal preparatin, and general husehld management, including sme light husekeeping. Senir Center Fund Nn-Majr Special Revenue Funds The Senir Center fund is used t accunt fr the administratin f Senir Center Prgram funds apprpriated by the Luisiana Legislature t the Gvernr's ffice f Elderly Affairs, which "passes thugh" the funds t the Cuncil. This prgram prvides cmmunity service centers at which lder persns 14

17 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cntinued) receive supprtive services and participate in activities which fster their independence, enhance their dignity, and encurage their dignity, and encurage their invlvement in and with the cmmunity. The Cuncil perates ne senir center in Beauregard Parish, Luisiana. N.S.I.P. Fund The N.S.I.P. (Natinal Services Incentive Prgram) Fund is used t accunt fr the administratin f Nutritin Prgram fr the Elderly funds prvided by the United States Department f Agriculture thrugh the Gvernr's ffice f Elderly Affairs, which in turn "passes thrugh" the funds t the Cuncil. This prgram reimburses the service prvider abut frty cents fr each cngregate and hme-delivered meal serviced t an eligible participant s that United States fd and cmmdities may be purchased t supplement these prgrams. Net assets f the N.S.I.P. Fund are restricted fr the purpses stated abve. Audit Fund The Audit Fund is used t accunt fr funds received frm the Gvernr's ffice f Elderly Affairs that are restricted t use as a supplement t pay fr the cst f having an annual audit r cmpilatin f the Cuncil's financial statements. Title III-D Preventive Health Fund The Title III-D Fund is used t accunt fr funds used fr disease preventin and health prmtin activities r services, such as: (1) equipment and materials (scales t weigh peple, educatinal material, and exercise equipment), (2) hme injury cntrl, () medicatin management, (4) mental health, and (5) nutritin (assessment/screening, cunseling, and educatin). The law directs the state agency administering this prgram t "give pririty t areas f the state which are medically under served and in which there are a large number f lder individuals wh have the greatest ecnmic and scial need." Supplemental Senir Center Fund The Luisiana Legislature apprpriated additinal mney fr varius cuncils n aging thrugh the state t be used t supplement the primary state grant fr senr centers. Beauregard Cuncil n Aging, Inc. was ne f the parish cuncils t receive a supplemental grant. These funds are "passed thrugh" the Gvernr's ffice f Elderly Affairs. Title III-C Area Agency Administratin (AAA) Fund The Title III-C Area Agency Administratin Fund is used t accunt fr sme f the administratin cst assciated with perating the Special Prgrams fr the Aging. Title III-E Natinal Family Caregiver Supprt Fund The Title III-E Fund is used t accunt fr funds used t prvide multifaceted systems f supprt services fr family caregivers and fr grandparents r lder individuals wh are relative caregivers, including inhme respite and respite care. In-hme respite prvides persnal care in the hme f the qualifying individual in rder t prvide a brief perid f relief r rest fr the client. Respite care prvides temprary r peridic services fr frail elderly r individuals with develpmental disabilities including Adult Day Care/ Adult Day Health, Grup Respite, In-Hme Respite, and Institutinal Respite. Utility Assistance Fund The Utility Assistance Fund is used t accunt fr the administratin f prgrams that are spnsred by lcal utility cmpanies. The cmpanies cllect cntributins frm service custmers and emplyees and remit the funds directly t the Cuncil r t the Luisiana Assciatin f Cuncils n Aging (LACA), 15

18 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cntinued) which in turn remits funds relating t Beauregard Parish t the Cuncil. These funds are used t prvide financial assistance t the elderly fr the payment f their utility bill. F. Measurement Fcus and Basis f Accunting Basis f accunting refers t when revenues r expenditures are recgnized in the accunts and reprted in the financial statements. It relates t the timing f the measurements made regardless f the measurement fcus applied. 1. Accrual Basis - Gvernment-Wide Financial Statements (GWFS) The Statement f Net Assets and Statement f Activities display infrmatin abut the Cuncil as a whle. Bth f these statements have been prepared using the ecnmic measurement fcus and the accrual basis f accunting. Revenues, expenditures, gains, lsses, assets, and liabilities resulting frm exchange and exchange-like transactins are recgnized when the exchange takes place. 2. Mdified Accrual Basis - Fund Financial Statements (FFS) The accunting and financial reprting treatment applied t a fund is determined by its measurement fcus. Gvernmental fund types use the flw f current financial resurces measurement fcus and the mdified accrual basis f accunting. Under the mdified accrual basis f accunting, revenues are recrded when susceptible t accrual; i.e., when they are bth measurable and available. "Measurable" means the amunt f the transactin can be determined and "available" means cllectible within the current perid r sn enugh thereafter t pay liabilities f the current perid. The Cuncil cnsiders all revenues "available" if they are cllected within 60 days after year-end. Expenditures are generally recrded under the mdified accrual basis f accunting when the related liability is incurred. The exceptins t this general rule are that (1) unmatured principal and interest n lng-term debt, if any, are recrded when due and (2) claims and judgments and cmpensated absences are recrded as expenditures when paid with expendable available financial resurces. G. Interfund Activity Interfund activity is reprted as either lans r transfers. Lans between funds are reprted as interfund receivables and payables as apprpriate and are subject t eliminatin upn cnslidatin. All ther interfund transactins are treated as transfers. Transfers represent a permanent reallcatin f resurces between funds. Transfers between funds are netted against ne anther as part f the recnciliatin f the change in fund balances in the fund financial statements t the change in net assets in the Gvernment- Wide Financial Statements. H. Cash and Cash Equivalents Cash includes amunts in demand depsits, interest-bearing demand depsits, and petty cash. Cash equivalents include amunts in time depsits and thse investments with riginal maturities f 90 days r less. Cash and cash equivalents are reprted at their carrying amunts that equal their fair values. I. Capital Assets The accunting and reprting treatment applied t the capital assets assciated with a fund are determined by its measurement fcus. Capital assets are lng-lived assets that have been purchased r acquired with an riginal cst f at least $1,000 and that have an estimated useful life f greater than ne year. When purchased r acquired, these assets are recrded as capital assets in the Gvernment-Wide Statement f Net Assets. In cntrast, in the Fund Financial Statements, capital assets are recrded as expenditures f the fund that prvided the resurces t acquire the asset. If the asset was purchased, it is recrded in the bks at its cst. If the asset was dnated, then it is recrded at its estimated fair market value at the date f dnatin. 16

19 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cntinued) Fr capital assets recrded in the Gvernment-Wide Financial Statements, depreciatin is cmputed and recrded using the straight-line methd fr the asset's estimated useful life. The estimated useful lives f the varius classes f depreciable capital assets are as fllws: Building Imprvements Equipment Vehicles Cmputers years 5-15 years 5 years 5 years Salvage values have nt been estimated by management when calculating hw much f an asset's cst needs t be depreciated except fr vehicles. Fr that categry f capital asset, management has used 10% f the vehicle's initial cst as a salvage value estimate. Depreciatin is nt cmputed r recrded n capital assets fr purpses f the Fund Financial Statements. J. Unpaid Cmpensated Absences Sick leave granted by this agency is vested. It is time ff with pay fr perids f illness r incapacity resulting frm nn-ccupatinal injury, as well as fr medical, dental, r ptical examinatins r treatment that can nt be arranged after hurs. The Executive Directr may request a physician's statement regarding any sick leave, at his/her discretin. Full-time emplyees accrue sick leave at a rate f ne (1) day per mnth; twelve (12) days per year. Sick time earned begins t accrue with the first full mnth f emplyment. While sick leave accrues and is an aggregate ttal n payment will be paid fr sick leave nt taken upn terminatin f emplyment. Annual Leave/ Vacatin is based n the number years f service and is earned as fllws: Days ne year t Five years 12 Five t Ten years 15 Ten years and ver 21 The emplyee's hire date will becme the emplyee's anniversary date. N annual leave may be taken until after the first full year f emplyment, and the same applies fr all cnsecutive years. An emplyee must submit an Applicatin fr Leave frm apprved by their supervisr and the Executive Directr in rder t receive annual leave. Department senirity will be adhered t fr all annual leave taken (especially, during the hlidays). Full-time emplyees will be able t carry ver ten (10) days annual leave t the fllwing year. N pay will be granted in lieu f annual leave. All hurs ver 80 must be taken befre January 1 st f the new year. Payment will be made fr any eligible accrued leave upn separatin frm emplyment. The rate f pay fr annual leave is the emplyee's current regular rate f pay. K. Allcatin f Indirect Expenses The cuncil reprts all direct expenses by functin and prgrams f functins in the Statement f Activities. Direct expenses are thse that are clearly identifiable with a functin r prgram. Indirect expenses are recrded as direct expenses f the Administratin functin. GEA prvides funds t partially subsidize the cuncil's Administratin functin. The unsubsidized net cst f the Administratin functin 17

20 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cntinued) is allcated using a frmula that is based primarily n the relatinship the direct cst a prgram bears t the direct cst f all prgrams. There are sme prgrams that cannt absrb any indirect cst allcatin accrding t their grant r cntract limitatins. L. Management's Use f Estimates The preparatin f financial statements in cnfrmity with generally accepted accunting principles requires management t make estimates and assumptins that affect certain reprted amunts and disclsures. Accrdingly, actual results may differ frm thse estimates. M. Eliminatin and Reclassificatins In the prcess f aggregating data fr the Statement f Net Assets and the Statement f Activities, sme amunts reprted as interfund activity and balances in the funds were eliminated r reclassified. Interfund receivables and payables were eliminated t minimize the "grssing up" effect n assets and liabilities within the gvernmental activities clumn. 2. REVENUE RECGNITIN Revenues are recrded in the Gvernment-Wide Statements when they are earned under the accrual basis f accunting. Revenues are recrded in the Fund Financial Statements using the mdified accrual basis f accunting. In applying the susceptible t accrual cncept using this prgram service fees, and interest incme are usually bth measurable and available. Hwever, the timing and amunts f the receipts f public supprt and miscellaneus revenues are ften difficult t measure; therefre, they are recrded as revenue in the perid received.. CASH AND CASH EQUIVALENTS At June 0, 2006, the Cuncil had cash and cash equivalents (bk balances) ttaling $67,277 as fllws: Interest bearing demand depsits $ 22,909 Demand depsits 44,68 Ttal $ 67,277 These depsits are stated at cst, which apprximates market. Under state law, these depsits (r the resulting bank balances) must be secured by federal depsit insurance r the pledge f securities wned by the fiscal agent bank. The market value f the pledged securities plus the federal depsit insurance must at all times equal the amunt n depsit with the fiscal agent. These securities are held in the name f the pledging fiscal agent bank in a hlding r custdial bank that is mutually acceptable t bth parties. At June 0, 2006, the Cuncil had $92,64 in depsits (cllected bank balances). These depsits are secured frm risk by $92,64 f federal depsit insurance. IS

21 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cntinued) 4. CAPITAL ASSETS Capital assets and depreciatin activity as f and fr the year ended June 0, 2006, fr the Cuncil is as fllws: Capital assets being depreciated Buildings Machinery and equipment Vehicles Ttal capital assets being depreciated Beginning Balance $ 1,956 19,62 26,500 48,088 $ Increase - 17,147 17,147 $ Decrease 4,045 9,09 1,084 Ending Balance $ 1,956 15,587 4,608 52,151 Less accumulated depreciatin fr: Buildings Machinery and equipment Vehicles Ttal accumulated depreciatin 1,956 14,581 21,261 7,798 1,818 6,921 8,79 4,045 9,09 1,084 1,956 12,54 19,14,45 Ttal capital assets being depreciated, net $ 10,290 $ 8,408 $ $ 18,698 Depreciatin expense f $8,79 fr the year ended June 0, 2006, was charged t the fllwing gvernmental functins: Title III B General administratin Ttal 6,921 1,818 8,79 5. BARD F DIRECTRS' CMPENSATIN The Bard f Directrs is a vluntary bard; therefre, n cmpensatin has been paid t any member. Hwever, bard members are reimbursed fr any ut-f-pcket csts they might incur n behalf f the Cuncil in accrdance with the Cuncil's applicable reimbursement plicy. 6. INCME TAX STATUS The Cuncil, a nn-prfit crpratin, is exempt frm federal incme taxatin under Sectin 501 (c) () f the Internal Revenue Cde f 1986 and is an rganizatin that is nt a private fundatin as defined in Sectin 509 (a) f the Cde. It is als exempt frm Luisiana incme tax. 7. JUDGEMENTS, CLAIMS, AND SIMILAR CNTINGENCIES There is n litigatin pending against the Cuncil at June 0, Furthermre, the Cuncil's management believed that any ptential lawsuits wuld be adequately cvered by insurance. 8. FEDERAL AWARDS PRGRAMS The Cuncil receives revenues frm varius federal and state grant prgrams which are subject t final review and apprval as t allwability f expenditures by respective grantr agencies. Any settlements r expenses arising ut f a final review are recgnized in the perid agreed upn by the agency and the Cuncil. Als, it is management's pinin that any audits r reviews by the grantr agencies wuld nt prduce disallwed prgram csts and liabilities t such an extent that they wuld materially affect the Cuncil's financial psitin. 19

22 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cntinued) 9. ECNMIC DEPENDENCY The Cuncil receives the majrity f its revenue frm funds prvided thrugh grants administered by the Luisiana Gvernr's ffice f Elderly Affairs. The grant amunts are apprpriated each year by the federal and state gvernments. If significant budget cuts are made at the federal and/r state level, the amunt f the funds the Cuncil receives culd be reduced significantly and have an adverse impact n its peratins. Management is nt aware f any actins that will adversely affect the amunt f funds the Cuncil will receive in the next year. 10. INTERFUND TRANSFERS perating transfers in and ut are listed by fund fr the fiscal year ended June 0,2006: Funds Transferred T General Fund Title II1B Title fflc-1 Title UIC-2 Title ffld AAA Audit Fund Ttal Transfer Frm General fund 769 $ $ 66 $ 59 $ 2,79 $ 5,578 Special Revenue Funds: Majr Funds: United Way Nn-Majr Funds: Senir Center NSIP Supplemental Senir Center Ttal Special Revenue Funds Ttal all funds,155 2, , $,155 $ 6,75 $ 5,000 $ $ S 60,921 $,155 $ 7,144 $ 5,457 $ 46,694 $ 66 $ 59 $ 2,79 $ 66, Transfers are used t (1) mve revenues frm the fund that statute r budget requires t cllect them t the fund that statute r budget requires t expend them, and t (2) use unrestricted revenues cllected in the General Fund t finance varius prgrams accunted fr in ther funds in accrdance with budgetary authrizatins. These transfers were eliminated as a part f the cnslidatin prcess in preparing the Gvernment-Wide Financial Statements, 11. RETIREMENT CMMITMENTS Emplyees f the Cuncil are participants in the scial security system and retirement benefits are prvided by that system. 12. RISK MANAGEMENT The Cuncil is expsed t varius risks f lss related t trts; thefts f, damage t, and destructin f assets; errrs and missins; injuries t emplyees; and natural disasters. The Cuncil has purchased cmmercial insurance t cver r reduce the risk f lss that might arise shuld ne f these incidents ccur. N settlements were made during the year that exceeded the Cuncil's insurance cverage. 20

23 Beauregard Cuncil n Aging, Inc. Ntes t the Financial Statements (Cncluded) 1. RECEIVABLES The receivables f $1,708 at June 0, 2006 are as fllws: Class f receivable i i Intergvernmental - grants! NSIPfund ' $ 1,708'f " ' 14. PAYABLES The payables f $275 at June 0, 2006 are as fllws: [GpEA payable. ; [ j I TitlelUE ' V$ i 21

24 SUPPLEMENTARY INFRMATIN REQUIRED BY GASB STATEMENT 4 22

25 a> T U j-.2 2 E CQ ra ^ H 1 < N cs N ".s "Su a. v-i m " - T CQ -s CQ I < a 1 N " N (N N <N 0 rt N (N * ' S 00 _ (N Tf m T r*-" TT U c ^5 t» UJ " g a ^ a a. «.«CQ ^ CQ r-" (N N <N Revenue - C "rt (2 00 c c a. a. E c u I aex u-

26 T S» g 'I n in fs -H f-i in r- en" >n v r- N < c U t < Q ~- CN 00 ^H t^ en CQ S '«at N a T C - nt GC «I < a 00 c U T a X u TJ es. 8 < ^ 5 5 "g «1 S "2 5= TJ w W S T, u " E. *«>i ~ t «rt C t c' \ m ^H rj-^ rf ^ r- N N > Tj- Tf Tf rr in "V en" N N < * N TT J2 " 1 U im services: eb c. IU en 7 ' t/a u 7j s Sffi trt *- W <UC Xi T i (A <u 17 ) "5 1H perating services Cfl _«"E. CL M > 1 1) CL1 U V] 01 Ttal expendituri I CL M Ms (deficiency) f revenue ver exp < X mditures VI U ^VI financing surce nsfers in nsfers ut ti g H cg surces e Htal ther financii H 7 J g 1 beg BJ J= e t u >» **-! c0> rt a t

27 r-i u fi ^ \ r- ^H CN (S in m r*- "i \ in ts ^H (*». r-h f«j H r--»n <S 1 < 2 < y r^ V) <N m pa CQ T CQ (N (N in m r-- m N >n r^i " r- ~- <N t i &0 C U- - CJ 1 -B S cd y < t^ N (N \^ " 1t fi tj) u. u x CQ >- CQ u- <u bfl 6^ CQ r*i r- m UPPRT GEA supprt w m Participant cntributir c 1= a. Q- s e- en «" T.1 ^f-h XPENDITURES Prgram services: Health, Welfare and w!i '5 C/} tn *- Salaries and benefi Travel perating services 'E In kind perating s perating supplies ther meals Capital utlay.ts C V. X V (2 Crt Excess (deficiency) f supprt ver expendi u VI ther financing surce H H a J 5P I S fc C 'S u.0 I. > T u X a JD T

28 T.2 I«< CU a < 5 S ^ f- >r> rs r- *_ CN^ r^ c*"t c" " < en u «C "^ Si!> C IT) fn < *n \ t--" CQ cd CQ - c 1 a 1«^ CN r" c" N CN N r-* \ C (""" C V^ V^ ^J, t*^ CN N N" " " N N s.s ' n ' c U 1 b (U - C I-H CN U S <u H cd U T cd en C CL X W *rt u ^*a c + > ub n CQ CN " C uc TD U -a cw u (U cd _ 00 CQ N CN C CN CN N C r- r v N CN ) " \ CN C rf iu CQ fa tt * b cr CQ Tf CN CN C --' ^ C ^H " " C r N" C N" VI a> -C C UPPRT C/5 c n. Q. en < W en C 1 T ^ CU c _ " *- X> c Participant c c C. in *e g w jram services: ealth, Welfare and 8 * & ^2 Salaries and benefi 1" perating services perating supplies ther meals Capital utlay en <U ''B cu g- > S ess (deficiency) f u X w ' c<d D. S t-, U c a. a «en er financing surce «j.s S en H M C ransfers ut Ttal ther fmancii H d ba ge Net ch b C *5 c 'S u J2 cd J fa 4> >. (4-1 T CU ba fa

29 cd ~- r»- r*- m Tf in N cs ^ PH 1 < < v* vj w < c Tf CN 00 cs" C 64 M V» cd CQ - 4_t _«2 CQ ~H r- r-> en ' Tf in 00 c U CQ HH a 00 I w S u c U 5 < 5 11 u W 00 H,1 8 CQ >- ed _ n f> fs I**" C ^ \ " TT" v" m te VJ &^ VJ VJ V) u C u- U 00 5^ PQ ^-H 00 c^ m -T : cu H P V) "C D.,, VI ^j. UJ c 4_i 5.& U 1 c 0. a. ^ fg C ex. 1 (2 U ll^ p ffi <u t «^ 00! «S vi c 2 c u 12 1 U C l) '«c S T I X B- «i- '5 P ** w S, ti «I 8 g «UJ 00 c 00.S c 5 Q g g 5 en en -S H H 1 x> c u c "h -D 1 x> c U- c cd J

30 Cfl S S 1 < S M S c Q g f ^ pa 1 U T bfl ca T CU-.S S b S ^ j-j ^ - (j 1 <n g a tp (2 s S J & Crt - "g.. C W C b 1 ^ C l' s It «u b «^ -*< s s s (N s Tj- (N S Ties (N IU ffl U I<t u. m S Tt (N S Tl- (S f-" rt c u s < t*h >> rt H Pd H T U 1 tf) hh UJ sw T Cat VI Prgram services: Health, Welfare \ perating serv.2 'S W VI U u 1 T Cu supprt ver exp VI ther financing (u: Transfers ut (4-1 g? T C U 1 u-

31 SUPPLEMENTARY INFRMATIN REQUIRED BY GEA 29

32 Beauregard Cuncil n Aging, Inc. Schedule 6 Schedule f Nn-Majr Special Revenue Funds Cmbining Statement f Revenue and Expenditures Fr the Year Ended June 0,2006 Supprt Intergvernmental Gvernr's ffice f Elderly Affairs Nutritin Services Incentive Prgram Puplic supprt Utility assistance Participant cntributins In kind supprt Title III D AAA Fund Title III E Fund Audit Senir Center 4,158 $ 26,11 $ 2,601 $ 1,107 $ 24, ,129 1,80 -,079 Ttal supprt $ 4,22 $ 27,260 $,981 $ 1,107 $ 27,728 Expenditures Health and Welfare and Scial Services Salaries and benefits Travel perating services perating supplies In kind perating services $ 4,74 $ ,748 $ 20 5,45 1,11 1,129 5,811 $ 52 26, ,80 -, $ 6, ,079 Ttal expenditures $ 4,985 $ 27,85 $,981 $,900 $ 10,554 Excess (deficiency) f supprt ver expenditures $ (66) $ (59) $ $ (2,79) $ 17,174 ther financing surces (uses) Transfers in Transfers ut $ 66 $ - 59 $ $ 2,79 $ - _ (17,174) Ttal ther financing surces (uses) $ 66 $ 59 $ $ 2,79 $ (17,174) Net change in fund balances $ - $ $ $ $ - Fund balances at beginning f year Fund balances at end f year $ - $ - $ $ $ (Cntinued) 0

33 Beauregard Cuncil n Aging, Inc. Schedule 6 Schedule f Nn-Majr Special Revenue Funds Cmbining Statement f Revenue and Expenditures Fr the Year Ended June 0, 2006 Supprt Intergvernmental Gvernr's ffice f Elderly Affairs Nutritin Services Incentive Prgram Puplic supprt Utility assistance Participant cntributins In kind supprt Ttal supprt Expenditures Health and Welfare and Scial Services Salaries and benefits Travel perating services perating supplies In kind perating services Ttal expenditures Excess (deficiency) f supprt ver expenditures ther financing surces (uses) Transfers in Transfers ut Ttal ther financing surces (uses) Net change in fund balances Senir Center Supplemental Energy Fund $,825 $ $ 92,471 24,200 24,200 1,75 NSIP Ttal 1, ,588 $,825 $ 1,75 S1 24,200 $ 124,176 $ - $ - $ - $ 6, ,121 1,725 5,588 $ - $ - $ - $ 81,27 $,825 $ 1, ,200 $ 42,90 J> t J> t - HJ ; - $ 4,049 (,825) (2,081) (18,217) (41,297) $ (,825) $ (2,081) S1 (18,217) $ (7,248) $ - $ (28) S; 5,98 $ 5,655 Fund balances at beginning f year 1,06 7,609 8,915 Fund balances at end f year $ - $ 978 S; 4,592 $ 44,570 (Cncluded) 1

34 Beauregard Cuncil n Aging, Inc. Schedule 7 Schedule f Nn-Majr Special Revenue Funds Cmbining Statement f Revenue and Expenditures Fr the Year Ended June 0, 2006 Supprt Vehicles Buildings Machinery and equipment Beginning Balance $ 26,500 1,956 19,62 Increase $ 17,147 Decrease $ 9,09 4,045 Ending Balance $ 4,608 1,956 15,587 Ttal capital assets being depreciated $ 48,088 $ 17,147 ^ ' $ 1*084 $ 52,151 Invested in General Fixed Assets Prperty acquired with funds frm United Way State Funds - Act 75 Senir Center Title III C AAA Title III B Title III C-l Title 111 C-2 Title III D Title III E Lcal Funds $ 1,00 $ - $ 1,084 1,586 1,62 20,045 2, ,526 17, , ,045 $ 1,00 1,084 1,586 1,62 11,006 2, ,628 Ttal Invested in General Fixed Assets $ 17,147 $ 1,084 $ 52,151 2

35 Jhn A. Windham, CPA A Prfessinal Crpratin 1620 Nrth Pine Street Jhn A. Windham, CPA DeRidder, LA 7064 Tel: (7) Fax: (7) REPRT N INTERNAL CNTRL VER FINANCIAL REPRTING AND N CMPLIANCE AND THER MATTERS BASED N AN AUDIT F FINANCIAL STATEMENTS PERFRMED IN ACCRDANCE WITH GVERNMENT AUDITING STANDARDS The Bard f Directrs Beauregard Cuncil n Aging, Inc. DeRidder, Luisiana I have audited the financial statements f the gvernmental activities and each majr fund f the Beauregard Cuncil n Aging, Inc., as f and fr the year ended June 0, 2006, which cllectively cmprise the Beauregard Cuncil n Aging, Inc.'s, basic financial statements and have issued my reprt theren dated Nvember 10, I cnducted my audit in accrdance with auditing standards generally accepted in the United States f America and the standards applicable t financial audits cntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States. Internal Cntrl ver Financial Reprting In planning and perfrming my audit, I cnsidered the Beauregard Cuncil n Aging, Inc.'s, internal cntrl ver financial reprting in rder t determine my auditing prcedures fr the purpse f expressing my pinins n the financial statements and nt t prvide assurance n the internal cntrl ver financial reprting. My cnsideratin f the internal cntrl ver financial reprting wuld nt necessarily disclse all matters in the internal cntrl ver financial reprting that might be material weaknesses. A material weakness is a reprtable cnditin in which the design r peratin f ne r mre f the internal cntrl cmpnents des nt reduce t a relatively lw level the risk that misstatements caused by errr r fraud in amunts that wuld be material in relatin t the financial statements being audited may ccur and nt be detected within a timely perid by emplyees in the nrmal curse f perfrming their assigned functins. I nted n matters invlving the internal cntrl ver financial reprting and its peratin that I cnsider t be material weaknesses. Cmpliance and ther Matters As part f btaining reasnable assurance abut whether the Beauregard Cuncil n Aging, Inc.'s, financial statements are free f material misstatement, I perfrmed tests f its cmpliance with certain prvisins f laws, regulatins, cntracts and grant agreements, nncmpliance with which culd have a direct and material effect n the determinatin f financial statement amunts. Hwever, prviding pinins n cmpliance with thse prvisins was nt an bjective f my audit and, accrdingly, I d nt express such pinins. The results f my tests disclsed n instances f nncmpliance r ther matters that are required t be reprted under Gvernment Auditing Standards.

36 Beauregard Cuncil n Aging, Inc. Bard f Directrs Page 2 This reprt is intended slely fr the infrmatin and use f management, thers within the rganizatin, and the Legislative Auditr and is nt intended t be and shuld nt be used by anyne ther than these specified parties, althugh under Luisiana Revised Statute 24:51, this reprt is distributed by the Legislative Auditr as a public dcument. DeRidder, Luisiana Nvember 10, 2006 era 4